Couple acquitted of estafa

CEBU, Philippines — A Danao City court has acquitted spouses Ernesto and Vanessa V. Herrera of estafa, ruling that the prosecution failed to prove their guilt beyond reasonable doubt.

The same court ruled that the prosecution also failed to establish that the couple misappropriated or converted the P175,000 allegedly invested by their former friends in a Kambal Pandesal business.

In a decision dated July 28, 2026, Judge Mae Lizbeth A. Williams of the Danao City court found the spouses not guilty of estafa under Article 315, paragraph 1(b) of the Revised Penal Code.

The case stemmed from a complaint filed by spouses Neil Richard and Janice Kintanar, who claimed that they had entered into a verbal partnership with the Herreras to operate a Kambal Pandesal branch at Cebu Mitsumi in Danao City.

The Kintanars claimed that they contributed P175,000 as their capital share, with an agreement that they would receive a 50 percent share of the business profits.

According to Neil, he and Ernesto had known each other for more than 30 years and were close friends.

He said they had agreed to start the business in June 2015, but Ernesto suggested that it initially operate under the sole proprietorship of EVH Business Ventures so that operations could begin immediately.

Neil testified that Ernesto promised to eventually convert the business into a partnership or corporation.

The Kintanars alleged that they later discovered discrepancies in the business's finances, including unpaid supplier obligations and allegedly unfunded checks. They demanded an accounting of the business in December 2018 and later sent a formal demand letter to the Herreras.

The prosecution presented Neil and Janice as witnesses, along with a bank officer who testified about the existence of the joint account opened by Neil and Ernesto.

The defense, however, maintained that Ernesto was the sole owner of the Kambal Pandesal franchise and that the P175,000 provided by the Kintanars was a loan or financial assistance, not a partnership investment.

Ernesto testified that he had entered into a franchise agreement with San Miguel Mills Inc. and had solely managed the Kambal Pandesal outlet.

He acknowledged receiving financial assistance from Neil but said the money had been remitted directly to San Miguel Mills Inc. to pay the franchise fee and had never been personally received by him.

He also claimed that he had regularly given the Kintanars remittances as returns on their investment, totaling as much as P1.42 million.

The court found that the evidence established the existence of a verbal partnership between the parties.

It noted that Neil and Ernesto had opened a joint bank account for the business and that exchanges on Facebook Messenger and through text messages showed Neil's involvement in the business, including discussions concerning suppliers, workers, and profits.

The court, however, said that the existence of a partnership did not establish the elements necessary to convict the spouses of estafa.

The court said the P175,000 had been deposited directly by the Kintanars into the account of San Miguel Mills Inc. and had never been physically received by the Herreras.

“There was no proof presented by the prosecution that money, goods, or other personal properties were received by the accused,” the court ruled.

It also found insufficient evidence that the amount had been misappropriated or converted for the personal use of the accused.

The court emphasized that the business had been established and operated using the money deposited directly with San Miguel Mills, rather than funds personally received by the Herreras.

It further said that the Kintanars knew the business would initially operate as a sole proprietorship under EVH Business Ventures but proceeded with the arrangement without requiring a written partnership agreement.

The court also dismissed Vanessa's criminal liability, noting that there was no showing that she had been involved in the Kambal Pandesal business venture.

While the court acknowledged that the Kintanars may have suffered damages and that the parties' trust had been breached, it said the alleged breach was civil in nature.

“It must be said that partners must act with outmost good faith,” the court said, adding that the dispute was particularly painful because the parties had been friends for years.

Ultimately, the court ruled that the prosecution had failed to overcome the spouses' constitutional presumption of innocence.

Spouses Ernesto and Vanessa Herrera were therefore acquitted of estafa because the prosecution failed to prove their guilt beyond reasonable doubt. — /IHM (FREEMAN)